Stock Analysis on Net

Danaher Corp. (NYSE:DHR)

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Danaher Corp., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings 6,433  3,646  3,008  2,651  2,492 
Net noncash charges 2,354  2,508  364  1,266  912 
Change in operating capital (429) 61  285  105  74 
Net cash provided by operating activities 8,358  6,215  3,657  4,022  3,478 
Interest payments, net of tax1 377  268  95  113  109 
Payments for additions to property, plant and equipment (1,294) (791) (636) (656) (620)
Proceeds from sales of property, plant and equipment 13  13  33 
Free cash flow to the firm (FCFF) 7,454  5,694  3,130  3,486  3,000 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Danaher Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Danaher Corp. FCFF increased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

Danaher Corp., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 16.50% 18.90% 26.40% 19.30% 16.10%
Interest Paid, Net of Tax
Interest payments, before tax 452  331  129  140  130 
Less: Interest payments, tax2 75  63  34  27  21 
Interest payments, net of tax 377  268  95  113  109 

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 2021 Calculation
Interest payments, tax = Interest payments × EITR
= 452 × 16.50% = 75


Enterprise Value to FCFF Ratio, Current

Danaher Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 210,490 
Free cash flow to the firm (FCFF) 7,454 
Valuation Ratio
EV/FCFF 28.24
Benchmarks
EV/FCFF, Competitors1
Abbott Laboratories 22.05
Anthem Inc. 13.45
Bristol-Myers Squibb Co. 11.57
CVS Health Corp. 9.49
Intuitive Surgical Inc. 40.23
Medtronic PLC 20.88
UnitedHealth Group Inc. 23.88
EV/FCFF, Sector
Health Care Equipment & Services 18.26
EV/FCFF, Industry
Health Care 17.33

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Danaher Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 210,569  174,606  116,135  87,877  77,810 
Free cash flow to the firm (FCFF)2 7,454  5,694  3,130  3,486  3,000 
Valuation Ratio
EV/FCFF3 28.25 30.66 37.11 25.21 25.94
Benchmarks
EV/FCFF, Competitors4
Abbott Laboratories 23.47 36.94 33.05 26.46 23.86
Anthem Inc. 12.74 6.04 12.73 24.58 13.91
Bristol-Myers Squibb Co. 10.52 11.63 23.39 15.74 24.15
CVS Health Corp. 10.30 9.42 12.30 17.89 14.20
Intuitive Surgical Inc. 56.47 76.70 54.58 57.79 47.07
Medtronic PLC 33.84 21.43 22.07 27.88 21.24
UnitedHealth Group Inc. 22.21 15.82 17.51 18.63 18.98
EV/FCFF, Sector
Health Care Equipment & Services 18.76 16.64 20.30 21.69 20.42
EV/FCFF, Industry
Health Care 16.62 18.99 19.41 18.86 18.85

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 210,569 ÷ 7,454 = 28.25

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Danaher Corp. EV/FCFF ratio decreased from 2019 to 2020 and from 2020 to 2021.